Once we have entered a trade, the market can go either way. You, in theory, have a 50/50 chance of the trade going in your direction. People who know at least the basics of trading automatically have a slightly higher chance of their trade going in their direction.
But if that’s true, how does the majority of traders lose money, up to 90% according to some sources?
The reason is that even when your trades go in your direction, a lot of traders don’t have a good exit strategy; they don’t take their profits when they should and when the trade turns around; they keep believing that the trade will magically reverse and go into more profit again.
One of the key elements of being a profitable trader is knowing when to exit your trades!
